IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Milind N. Jadhav, J.
Sahastraa Exports Pvt. Ltd - Appellant
Versus
Ap Moller - Maersk A/s & Ors. - Respondents
Interim Application (L) No. 14248 of 2022 In Commercial Suit (L) No. 14246 of 2022
Decided On : 27-05-2022
Detention - Cargo - Indian Bills of Lading act, 1856, Indian Contract act, 1872 - The court discussed the detention of the present cargo (ascorbic acid - Vitamin C - 20 MT) by Defendant No.2 and the contractual lien exercised by the Defendant Nos.1 and 2 for recovery of their dues from the Plaintiff in respect of an earlier transaction. The court highlighted the absence of privity of contract between the Plaintiff and Defendant Nos.1 and 2, the perishable nature of the detained goods, and the urgency of the situation. The court directed the release of the cargo to the Plaintiff subject to securing the claim of the Defendants.
Fact of the Case:
The Plaintiff sought release of detained goods (ascorbic acid - Vitamin C - 20 MT) from Defendant No.2, claiming that the detention was illegal and arbitrary. Defendant No.2 exercised a contractual lien over the present cargo for recovery of their dues from the Plaintiff in respect of an earlier transaction.
Finding of the Court:
The court found that there was no privity of contract between the Plaintiff and Defendant Nos.1 and 2, and highlighted the urgency of the perishable nature of the detained goods. The court directed the release of the cargo to the Plaintiff subject to securing the claim of the Defendants.
Issues: Detention of present cargo, contractual lien exercised by Defendant Nos.1 and 2, absence of privity of contract, urgency of the perishable nature of the detained goods.
Ratio Decidendi: The absence of privity of contract between the Plaintiff and Defendant Nos.1 and 2, and the urgency of the perishable nature of the detained goods influenced the court's decision to direct the release of the cargo to the Plaintiff subject to securing the claim of the Defendants.
Final Decision: The court directed the Plaintiff to deposit 50% of the amount claimed by Defendant Nos.1 and 2 or furnish a bank guarantee in the like amount within a specified period for the release of the present cargo, subject to payment of demurrage charges by the Plaintiff till the date of release.
JUDGMENT
Milind N. Jadhav, J. - Heard Interim application (L) No.14248 of 2022.
2. By the present Interim application, the applicant / Plaintiff has prayed for multiple reliefs which are at paragraph No. 28 of the application. an urgent application is made on the ground that the detained goods (hereinafter referred to as the "present cargo") are perishable and should be released as their value is deteriorating on a daily basis.
3. The Plaintiff has filed the present Suit for seeking a declaration that detention of the present cargo (ascorbic acid - Vitamin C - 20 MT) by Defendant No.2 is without authority of law; for release of the cargo or for maintenance of the cargo in the Defendant's possession until it is handed over to the Plaintiff without payment of detention or demurrages charges / ground rent and / or penalty. The Plaintiff also seeks damages of Rs.10,00,000/- suffered by the Plaintiff due to wrongful detention and also in the alternative seeks a money decree of Rs.1,23,89,909/- in the nature of damages suffered by the Plaintiff arising out of wrongful detention.
4. The reason for hearing the Interim application during the vacation arose because the cargo in question imported by the Plaintiff is ascorbic acid (Vitamin C), whose strength is reducing with each passing day. The Plaintiff has argued that the Defendant No.2 is levying demurrages charges of approx. Rs.10,000/- per day and despite the Plaintiff having paid the full freight charges of the detained goods, the same are withheld by the Defendant Nos.1 and 2 on the ground of claiming a lien over the cargo. Hence the urgency.
5. It will be apposite to briefly state such of the relevant facts which are necessary to hear the Interim application.
5.1. Plaintiff is a Private Limited Company in India; Defendant No.1 is a Danish Company and is one of the largest container shipping line and vessel operator in the world. Defendant No.2 is a Private Limited Company in India and is a subsidiary of Defendant No.1. Defendant No.5 is a company incorporated in China.
TRaNSaCTION NO: 1 : 2020
5.2. In October 2020, Plaintiff booked the Defendant No.2 as its shipping line for exporting certain chemicals to its customer based in Beirut, Lebanon. On receiving the quotation from Defendant No.2, Plaintiff booked a shipment of two containers containing 264 drums (42.240 MT) of acetone for shipping the same to Beirut. Plaintiff paid the requisite freight charges; sanctions were obtained and Defendant No.2 issued a Bill of Lading dated 03.12.2020. The value of the cargo was Rs.38,92,572/- which was to be paid to the Plaintiff after confirmation of receipt of the cargo.
5.3. according to the Plaintiff after shipping the cargo, Defendant No.2 informed the Plaintiff that the shipment was scheduled for re-export and returned back to India. Plaintiff had requested the Defendant No.2 to modify the details of the consignee in order to complete the delivery but Defendant No.2 did not respond and returned the shipment to India. Thereafter Defendant No.2 re- exported the two containers separately for which two Container Freight Stations (CFS) were assigned. Thereafter Defendant No.2 issued a fresh of Bill of Lading dated 16.02.2021 and Non Negotiable Way-bill dated 10.02.2021 for the same shipment. Defendant No.2 did not inform the Plaintiff about return of the cargo due to which after the free detention period was over, demurrages charges, detention charges and other charges became applicable on day to day basis.
5.4. In april 2021, Plaintiff came to know about the aforementioned cargo having returned back and unloaded and for which charges became applicable on day to day basis. Plaintiff sought 100% waiver on detention and demurrages charges / ground rent etc. from Defendant No.2 whereas Defendant No.2 proposed a 50% waiver.
5.5. In September 2021, Plaintiff learnt that the cargo was unilaterally auctioned to a third party without giving notice to the Plaintiff.
5.6. Thereafter Defendant No.2 by email date
The trial court's failure to consider the defendants' arguments led to an improper interim injunction, necessitating remand for a fresh assessment under applicable laws and regulations.
A freight forwarding agent does not have a general lien over the goods of a consignor unless there is an express contract to that effect or the agent falls under one of the categories of persons enti....
The exercise of lien without statutory basis, the validity of territorial jurisdiction, and the exceptional circumstances for granting interim mandatory injunction.
A conjoint reading of Regulations 10(1)(l) and 10(1)(m) makes it abundantly clear that the 2018 Regulations are fully binding on the shipping line and it is not open to the latter relying on a contra....
The court affirmed that under maritime law, detention charges are valid when stipulated in a bill of lading, and the burden to disprove wrongful claims lies with the party asserting entitlement.
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